Yes — if you're GST/HST, VAT, or Australian GST registered, you must charge tax on the full invoice amount, including any expenses you're billing back to clients. Rebilled expenses are part of your taxable supply.
The common mistake: a Canadian consultant invoices $3,000 for services + $800 for a hotel. They charge 13% HST on the $3,000 ($390) but not on the $800. CRA expects HST on the full $3,800 ($494). The consultant owes $104 out of pocket.
The exception — disbursements: if the client's name is on the original receipt, you paid as the client's agent at exact cost with no markup, and you didn't claim an ITC on the expense, it may qualify as a disbursement (not subject to HST). This is a narrow exception. Most freelancers bill reimbursements, not disbursements.
Canada GST/HST provincial rates (2026): Ontario 13% HST, BC 12% (5% GST + 7% PST — professional services often PST-exempt), Alberta 5% GST, Quebec 14.975% (GST + QST separately), Atlantic provinces 15% HST.
UK VAT on rebilled expenses: 20% VAT applies to the full invoice amount including rebilled expenses. The agent exception (disbursement equivalent) has strict requirements: client is the actual recipient of the supply, exact cost pass-through, no input VAT claimed. For most freelancers, charge 20% VAT.
Australia GST: 10% GST on all taxable supplies on the invoice. Tax invoice must show "Tax Invoice," your ABN, GST amount separately, and the total. Claim input tax credit on the original expense receipt; charge output GST to the client on the full invoice.
Input tax credits / input VAT: you can claim the GST/HST or VAT you paid on the original expense as an ITC. The ITC and the output tax you collect from the client approximately offset — you act as a conduit for the tax authority.
In ExpenseBot: when you tag an expense to a client project and click "Bill Client," the modal suggests the correct tax rate (13% for Ontario, 20% for UK, 10% for Australia) based on your account settings. The generated invoice includes your registration number, tax rate, and tax amount. Tax is never auto-applied without a registered BN/VAT number in Settings.
See also: GST/HST Invoice from Expenses | Bill Client Invoice